As we know, Starbucks is partnering with Lions Gate Films to promote the forthcoming feel-good movie “Akeelah and The Bee.” And as many folks are pointing out (like Jackie Huba from Church of the Customer) … something just doesn’t feel-good about this partnership. It feels like Starbucks is becoming less like Starbucks and more like McDonald’s.
Starbucks has been quick to point out this in-store promotion will feel much more subtle and nothing like McDonald’s slapping up one-sheet posters, inflating humongous rooftop balloons, and doling out Happy Meal trinkets to promote a blockbuster film.
The financial upside for Starbucks with this partnership is tremendous. It’s my understanding Starbucks is paying Lions Gate NO MONEY. Instead, Starbucks is trading real estate space in its 5,500+ North American stores to promote this movie. By placing signage in-stores ranging from posters, to coffee cup sleeves, and placards alongside muffins in the pastry case, Starbucks will receive a share of box office sales, merchandising revenue, television rights, soundtrack sales, and DVD sales (including sales at non-Starbucks locations). We are talking about Starbucks potentially receiving millions upon millions of incremental dollars that can go directly to the bottom-line.
However, the downside is also tremendous – violating the trust of customers and store employees. Customers and employees have come to expect Starbucks not to treat them like tools in the marketing promotional game.
Starbucks has subtly promoted television ventures before (Ken Burns’ JAZZ and Road Trip Nation [both PBS programs]). But this Lions Gate Films partnership dials up the promotional intensity from subtle to heavy. Is it worth the incremental millions to whittle away the trust Starbucks has built with customers and employees for short-term promotions of this kind?
People expect McDonald’s to aggressively push the newest blockbuster Hollywood movies because it helps customers and employees to feel McDonald’s is hip and cool again. Is Starbucks becoming so uncool they need to borrow coolness from Hollywood?
Speaking as a former Starbucks marketer, there is an unwritten code of marketing authenticity Starbucks attempts to follow with everything it does marketing-wise. One of the tenants in this code states: Never forsake the company’s heritage and personality for a short term gain.
With the “Akeelah and the Bee” marketing promotion, I can’t help but think Starbucks is forsaking its heritage and personality for a short term financial gain. When a company starts appealing to analysts working on Wall Street more than its customers living on Main Street, you know something is askew. To me, there seems to be a trust-destroying downside to this financial-building upside.
I feel a pang of guilt when I spend money in a Starbucks. There are members of my local community that are trying to run an espresso bar that they own. I always feel like I am taking money out of that "mom and pop" when I spend money with Starbucks. The fact that Starbucks is promoting a big time motion picture is one more reminder that, besides salaries, my money is being shipped out of town to make some corporation more money for its stockholders.
I think that I will go get an iced americano from River Nile Coffee off of Hwy. 377. It is local, you know.
Posted by: Matt Steele in the Hour of Chaos | January 16, 2006 at 02:39 PM
It was only a matter of time. Starbucks has a large and intensely loyal customer base. That they would start to look at that as a resource beyond their coffee purchase isn't really a surprise. I don't doubt that the promotion will be well done and tasteful. I also don't doubt that some portion of their clientele will resent being sold. It remains to be seen if the end benefit justifies the risk.
On thing is certain. They better hope the movie doesn't stink!
Posted by: Stephen Macklin | January 16, 2006 at 04:01 PM
I'm not a marleting expert, so I can't comment on that aspect, but maybe this will shake some people out of their delusion that Starbucks is a cafe and make them realize that it's a fast food joint that serves pretty bad coffee. If people already put up with the numbing sameness of every location, the shelves of souvenir bric-a-brac, and the over-roasted coffee, I doubt these same patrons will feel betrayed by the movie advertising. Besides, in 97% of the country, where elese are they going to go for coffee?
Posted by: angryrobot | January 16, 2006 at 04:59 PM
John, Good post as usual. This doesn't surprise me in the least bit. Starbucks built their reputation on providing the customer with a one-of-a-kind coffee drinking experience. Now they just talk about it instead of truly live it. Yes, you can buy a better tasting coffee at a fraction of the price elsewhere, but nowhere else can you feel like high society when purchasing and drinking your morning cup of joe. Starbucks certainly has great snob appeal. BUT this recent move with Hollywood will probably change all that. I think this another sign Starbucks is headed in the wrong direction and providing their shareholders happy returns is more important to them than providing their customers with a good experience.
Screw Fivebucks anyway. I'd much rather support the local newspaper stand or brew my own coffee at home than give another hard earned dollar to the Corporate Joe's who can give two shits about me.
Posted by: Steve Liberati | January 17, 2006 at 08:06 AM
Most people who will pay $2-4 for a cup of mediocre coffee ain't gonna notice a few movie tie-in gee-gaws if they're done in a companionable color scheme and if the movie is mellow and not "anti-Starbucks brand," whatever the hell that means.
My prediction: there will be "Starbucks movies" just like the CDs they have in store. What's the diff? Like the Oprah book club, it's an extension of the brand.
"Did you see 'XYZ Film?'"
"Yeah... It was so 'Starbucks.'"
Posted by: Andy Havens | January 17, 2006 at 10:20 PM
Starbucks is my front porch and a great place to conduct business. For me nothing will change.
Posted by: steve mertz | January 19, 2006 at 05:41 PM
Most of you sound bitter. Maybe it's all that local joe? Do your homework on SBUX's CSR annual report (http://www.starbucks.com/aboutus/csrannualreport.asp) and tie that information in with the movie and you will learn how the two compliment each other. Finding ways to extend the brand and leverage assets while promoting a positive message (literacy) is exactly the kind of company I respect. It is fine to patronize your mom & pop stand, just as it is admirable to provide ALL workers with health benefits and stock ownership. Does the purveyor around the corner support their employees or social causes too? Oh ya, if you find their roast too much, read their menu (http://www.starbucks.com/ourcoffees/menuboard.asp?category%5Fname=Coffee+Menu+Board), they have several options...the only thing you won't see is a clown with red hair!
Posted by: BJ Sherman | February 27, 2006 at 10:02 PM
I saw a great movie this past weekend. Akeelah and the Bee, is about an gifted 11 year-old whom finds her way to the National Spelling Bee Championship. Along the way she finds that she has people in her corner who help her conquer her demons and want to see her succeed.
I liked the movie because it addressed a little known phenomenon in the African-American community in which academic achievement is considered a white people thing. There were several references to large and complicated words as being white words. Akeelah is torn between fitting in and reaching her true potential. I won’t give away the ending but let me provide a hint. It’s an inspirational story with a moral and a happy ending.
Even though I enjoyed the movie, the plot wasn’t the most interesting facet of Akeelah. What most interested me about the movie was the way in which it was marketed. You didn’t see the typical deluge of trailers and movie posters plastered every which where. Instead, what you saw were green and yellow neon coasters, coffee sleeves, and signs placed strategically around your local Starbucks [SBUX].
Long the number one purveyor of your favorite java concoction, Starbucks has been expanding its reach into other, seemingly unrelated businesses. The company has seen success in satellite radio, production and sales of CDs, and is now getting into the marketing of movies. Recognizing its power as a place where “communities meet” and “word-of-mouth” is created, Starbucks is making an effort in earnest to capitalize on that unique position.
As a frequent customer of Starbucks [Full disclosure: I’m currently drinking a caramel macchiato and writing this blog in a New Jersey based Starbucks. So I’m a little biased toward the company.] I’m all for the long-term success of the chain in these non-caffeinated aspects of its business. I emphasized long-term because I need this company to slip up somehow. The business is so excellent and execution so on point that the market has rarely priced the stock to a level where I felt comfortable buying it.
Akeelah is a great movie. Critics (namely my favorites Ebert & Roeper) are already calling this movie an Oscar contender. Which is actually a little disappointing. I’m glad Starbucks and Ken Lombard, the head of Starbucks Entertainment, picked a great movie – one that falls right into line with their culture. I’m confident they will continue to pick great films. But can’t they mess up at least once so the market can depress the stock? I want to buy!
Maybe this weekend’s box-office is a good sign as Akeelah came in eigth-place. Well behind the critically unacclaimed [Two thumbs down from E&R] Robin Williams’ film RV. I hope this is the slip up I’ve been waiting for. As a value investor I wait for disappointing news that is temporary and then wait to see how the stock reacts. Akeelah is a great movie (and a great product) that I’m hopeful will not do well. This would be a perfect example of a good company with a temporary setback. If that happens let’s hope that the manic depressive market punishes the stock, and at that point I’ll probably be a buyer.
Posted by: Benjamin Taylor | May 03, 2006 at 06:51 PM